Yes, because the chance that you could suffer a loss begins with the first day of business. You can’t get help after the fact. If you suffer a loss and have no insurance or have improper or insufficient coverage, there is very little, if anything, your Heuer Insurance Agent can do to help you. You must be prepared for the risks that are inherent in any business and the losses that they can cause.

Also, many states and local jurisdictions require that businesses be insured to begin operating. And if you rent space for your business, your landlord probably requires that you be adequately insured as well.

The best thing to do is to take a complete inventory of all your business property, determine its value and decide if its worth insuring. Then check to see that the items on the inventory list are included in the basic business property policy and covered for the correct amount. If not, ask the agents at Heuer Insurance Agency, a Trusted Choice® agency.

You also need to consider your business situation. Are you planning a major expansion? Does your inventory have a decidedly peak season (like a toy store in December)? Or does it fluctuate throughout the year (like a clothing store)? Is your liability limit high enough in light of the new job contract you just signed? Business policies are designed to be added to or subtracted from to meet your needs. Be sure to discuss changes to your business with your Heuer Insurance agent so that he or she can help you ensure your policy still provides adequate coverage.

Some common additional coverages for business property include (but are by no means all-inclusive):

Boiler and Machinery Insurance

Even if you do not own a boiler, you may need this coverage. The term “boiler and machinery insurance” is gradually being replaced with terms such as “equipment breakdown” or “mechanical breakdown” coverage. This insurance provides coverage against the sudden and accidental breakdown of boilers, machinery, or equipment including computer and telephone/communication systems. Coverage usually includes reimbursement for property damage, expediting expenses (e.g., express transportation charges), and business interruption losses.

Builders Risk Coverage

This covers buildings in the course of construction. Depending on the policy, this coverage can be for either the building’s value at the time of loss or its full value at the time of completion.

Building Ordinance Coverage

Provides coverage when a community has a building ordinance stating that when a building is damaged to a specified extent (usually 50%), it must be completely demolished and rebuilt in accordance with current building codes rather than repaired. Special attention is required when establishing the amount of insurance.

Business Interruption Insurance

This covers the loss of earnings as a result of damage or loss of business property. Reimbursement for salaries, taxes, rents, and other expenses plus net profits that would have been earned during the period of interruption can be included.

Commercial Crime Coverages

This covers money and securities, stock and fixtures against theft, burglary and robbery both on and off the insured premises and from both employees and outsiders.

Debris Removal Coverage

Covers the cost of removing debris after damage from a fire or any other covered peril that requires debris removal before reconstruction of the damaged building can begin. This is not part of fire insurance coverage and must be added by endorsement.

Fidelity Bonds

This covers business owners for losses due to dishonest acts by their employees.

Glass Coverage

This provides coverage for glass breakage such as store windows and plate glass on office fronts.

Property insurance can be purchased on the basis of the property’s actual cash value, on its replacement cost, or on an agreed amount. The differences among the three are:

Actual Cash Value

Is the replacement cost of the item minus depreciation. For example, a new desk may cost $500. If your 7-year-old desk gets damaged in a fire and its value has depreciated by 50% then the amount you would receive from the insurance carrier is $250.

Replacement Coverage

This coverage pays the cost of replacing an item without deducting for depreciation. So, if today’s cost for a desk of a size and construction similar to the 7-year-old one damaged by fire would determine the amount of compensation. If it costs $500 today, that would be the replacement coverage.

Agreed Amount

Art objects, antiques and other unique items are usually insured at or on an amount agreed upon when the policy is being written. An appraiser values the goods to be insured and the business owner and the insurer agree upon an amount that the insurer will pay if the goods are destroyed due to a covered peril.

Check your policy. If you prefer replacement coverage and do not already have it, this coverage can be added to your policy. Inflation-guard coverage, automatically increases your insurance amount a certain percentage, protecting your property against rising construction costs. Your Heuer Insurance agent can tell you about the costs involved.

Basic property insurance policies generally cover losses caused by fire or lightning and the cost of removing property to protect it from further damage (e.g. removing inventory or equipment from a damaged building so it won’t be stolen). “Extended perils,” including windstorm, hail, explosion, riot and civil commotion, and damage caused by aircraft, automobiles or vandalism, are usually covered in a standard policy. Other important perils, often not covered and considered “optional” in almost all standard policies, include earthquake and flood damage, building collapse, and glass breakage.

Property insurance can be written as either a “named peril” policy or an “all risk” policy. A named peril policy provides coverage for those perils specifically named in the policy. An all risk policy covers loss by any peril not specifically excluded in the policy. The term “all risk” does not mean that all perils will be covered and, to avoid confusion, is often replaced with the term “special form” or “special causes of loss” coverage.

Check with your HIA agent on the perils covered by your policy. If you wish, additional coverage can be added.

Everybody seems to be suing everybody else these days. What if someone sues my business?

No business can afford to be unprepared for a lawsuit. Liability insurance protects your business assets when the business is sued for something the business did, or failed to do that contributed to injury or property damage to someone else. Liability coverage extends not only to paying damages but also to the attorneys’ fees and other costs involved in defending against the lawsuit–whether valid or not.

The standard business owners policy provides liability coverage, as does a separate policy known as a commercial general liability (CGL) insurance policy. Generally, commercial liability insurance, whether purchased in a separate policy or as part of a standard business owners policy, will cover bodily injury, property damage, personal injury or advertising injury. The medical expenses of a person or persons (other than employees) injured at the business or as a direct result of the operations of the business are also covered.

Usually excluded from both types of liability insurance policies are suits by customers against a business for nonperformance of a contract and by employees charging wrongful termination, racial, gender discrimination or harassment.

Check with your Heuer Insurance agent for help finding liability protection covering the situations that may arise in your business. We find ways to fill in the holes.

What about the cars and truck that I have in my business? Is the coverage like what I have on my personal car?

Yes, but in addition to covering the vehicles you own for liability, medical payments, uninsured motorist coverage, comprehensive and collision, it also covers you when you rent a car and when your employees are operating their personal cars for your business. Be sure to review your auto exposures with your Heuer Insurance agent.

What happens when I loan my car to someone? Is that person covered by my policy? Am I still covered?

Yes, liability and coverage for physical damage (i.e., comprehensive and collision) always follow your car. So if a friend borrows your car and has an accident, you’re still protected against the cost of damages or injuries. Plus, if the driver of your car is insured, his/her policy will also be available to cover the cost of damages and injuries.

The same rules apply when you borrow someone else’s vehicle. Your own insurance follows you no matter whose car you are driving. But the vehicle owner’s policy is the primary if you have an accident.

After an accident, you should call Heuer Insurance Agency as quickly as possible to help you complete a claim form, determine what exactly happened and evaluate any damages or injuries. Your agent will then contact your insurer’s claims adjuster (usually within an hour of your report) whose job is to work with you to fix the problem. While compensating you for auto repairs or medical expenses is easy and immediate, determining liability is more complicated. The adjuster will begin the settlement process, the length of which will depend on the cooperation of the other party.

The amount of compensation for your loss can vary according to the adjuster’s analysis of the damage. You do not have to accept the first amount of money you are offered, if it is lower than the cost of your repair or recovery. While you may have to do some homework to prove your reported loss is valid, it’s worth it to be certain your insurer lives up to the provisions of your policy.

You should always talk to us about insuring your rare and valuable property. Since a classic car usually cannot be replaced, you’ll probably want ample compensation if it is lost. A classic car, because it is rare or unique, may indeed require a special insurance policy.

Under what circumstance do I not need certain types of auto insurance?

While most drivers today are generally insured for collision and theft, this coverage may not be necessary for every vehicle.

Liability insurance, as mentioned earlier, is essential and in many states required. But if you drive an older car that isn’t worth much money, you may be able to do without collision insurance. If you have an accident, repair costs could easily be higher than the value of your vehicle, thus “totaling” it. This means your insurer will pay you the total book value of your vehicle, and that could be far less than the cost of your vehicles repair. So, collision insurance may not cover your loss adequately.

Since it depends on special circumstances, ask your agent at Heuer Insurance Agency for assistance.

Because your premium is based partly on the level of risk the insurance company must take, there are things you can do to lower your premium. Installing deadbolt locks (to discourage theft), fire extinguishers, smoke alarms, and burglar and fire alarms that alert your local police and fire stations can often save you up to 15 percent on your premium. Check with your Heuer Insurance agent before purchasing any of these items to see if your insurance carrier has specific requirements to qualify for the applicable discount.

Many insurers also offer discounts if you insure both your home and automobile with the same company. Another way to save may be to increase the deductible on your homeowners policy. If your deductible is $100, it means that you agree to pay this amount first, and your insurance company will pay for damages that exceed this deductible. By increasing your deductible from $100 to $250, or even $500, this decreases the insurance company’s risk, which may mean a savings in your premium.

Also, it pays to shop around for insurance coverage just like anything else. Of course, you may want to keep in mind that the extent of coverage also determines the premium cost so the cheapest policy is not necessarily the best. Your agent at Heuer Insurance Agency can help you evaluate the different policies and companies so you can make the choice that is right for you.

Liability covers bodily injury and property damage to others due to your negligence. The coverage applies to non-auto accidents that occur either at your residence or off the premises. Medical expense payments such as first aid can also be due to the injured party. Should you be sued or suspect that you may be, contact our office immediately

The same rule of thumb applies to renters as to homeowners. If a catastrophe struck tomorrow, could you afford to replace everything you own? Or if you were sued, would you have enough money to pay legal fees and possibly settle the suit? If not, chances are you would benefit from the protection that renters insurance brings.

Renters insurance offers the same general personal property coverage and liability protection as a homeowners policy. Thus, your camera is insured while you are on vacation, and you are covered if your grandfather clock crashes into the apartment lobby’s wall and leaves a gaping hole. In fact, most policies are surprisingly extensive and may include additional living expenses (also called loss-of-use coverage) if you are forced by fire or any other covered peril to live elsewhere.

Isn’t my apartment covered under my landlord’s policy?

No, the landlord’s insurance covers damage to the building and the landlord’s property, but not your personal property or liability. Plus, you may be liable for damage to the building if it is your fault. If you go out and leave the stove on and an ensuing fire causes extensive damage to the entire building, you may be held liable to the landlord.

Renters insurance is surprisingly inexpensive. That’s because you are not insuring a building. Like all property/casualty policies, the value of your property to be insured and other risk factors are weighed by the insurance company to determine your premium. Your agent at Heuer Insurance Agency can help you find the best combination of coverage and cost that you determine are right for you.

I live in an apartment with three roommates. Do we each need a policy?

Usually, it is best if all roommates are on the same policy although it’s possible for each to purchase his or her own coverage. If you do need to “go it alone”, you alone receive the security of renters coverage. Check with one of the agents at Heuer Insurance Agency.

Condo owners insurance covers the same general areas outlined throughout this guide for homeowners in the important areas of personal property and liability. In addition, condo owners insurance provides coverage for some situations specific to condominium unit owners.

Usually, the condominium association buys insurance to cover the property (building and structures) and liability coverage for the general association. If you own a condominium unit, you may be responsible for covering from the “walls in” on your unit, that is, for your personal property and the interior of your unit (whatever area is excluded from the condo association’s policy) as well as for your personal liability.

Sometimes, condo owners are assessed by their condo association for losses “outside the walls” that were not completely covered by the association’s policy. For example, if the clubhouse is destroyed and the condo association did not have it insured, you could be assessed for a “share” amount needed to replace it.

Most catastrophes are covered; for example, wind damage from hurricanes and tornadoes come under the windstorm peril and so they are included. Flood and earthquake damage, however, are not covered by a standard policy.

Be careful not to be lulled into a false sense of geographic security. Flood and earthquake activity is more widespread than many people realize. For example almost 90 percent of the U.S. population lives in seismically active areas. Since 1900, earthquakes have caused damage in all 50 states. If your home is located in a flood-prone area, you are 26 times more likely to suffer a flood loss than a loss from fire.

You may want to check with your Heuer Insurance agent about special catastrophic policies for normally excluded conditions like floods and earthquakes. Of course, the cost of such extra coverage may reflect the high risk involved. If for example, you live along a shoreline, you can expect to pay a higher premium for flood coverage than someone living on a mountain top would pay.

I rent out my basement, are my tenants covered by my homeowners policy?

No, your property and the structure (the basement) are covered by your policy as is your personal liability. The tenants’ possessions and liability are not covered by your policy. Therefore, they may wish to purchase their own renters insurance. Whether you are a lessor or a renter, you should check with your HIA agent to make sure you have the coverage that is right for you.

My mother lives with us in a separate in-law suite, are her possessions covered?

As a member of the family, she is probably covered under your homeowners policy. So too is your child while away at college covered for personal liability, theft or damage to his or her property even in the dormitory or college apartment. However, you should check with your agent at Heuer Insurance to be sure you have chosen the coverage that is right for you.

Insurance companies can operate in more than one state so the company that carries your primary residence may be able to issue a policy for your vacation home. Personal liability is extended from the primary homeowners policy so the second policy need cover only property. This type of policy is called a “dwelling policy.” If you rent out your second home for all or part of the year, your homeowners policy may need to be endorsed (changed) to cover the increased liability exposure. The renter’s property is not covered under your dwelling policy. Should damage occur while someone is renting your property, they will need to check with their own agent about their coverage.

Yes, but within certain limits. Both are covered as personal property used for business purposes. However, like all personal property, there are monetary limits on reimbursement. Whether your home business is your primary occupation or a hobby that nets you a few hundred dollars a year, it is still a business and you should treat it as such. If you’ve invested quite a bit in equipment (woodworking tools, for example) and sell the occasional decoy, you should consider whether the personal property limits are sufficient.

Also, keep in mind that the personal liability protection in your homeowners policy does not extend to business liability. Check with Heuer Insurance Agency concerning your business insurance needs.

If most of us suddenly found ourselves without anything due to some calamity, we would be hard pressed to know all that we had lost. When was the last time you counted the number of shoes you own or CDs, not to mention furniture, dishes, drapes, or audio and video equipment? The list goes on and on. How much is it all worth and where would you start if you had to replace it?

Now is the time to make a list of major household items and possessions. The handy inventory form at the back of this guide will make your job easier. Where possible, list the serial number, date and cost of purchase, and even include the receipt if you can.

Another easy way in preparing a home inventory is to use a video camera or take pictures of your home and its contents. As you take the video, you can also talk about the items and their date and cost of purchase.

Whichever method you choose, have a copy made and ask a friend or family member to hold on to it, or store your copy in a safe deposit box. That way if the worst happens and your home is destroyed, the inventory list will be safe at another location. We have other ideas…do you have time to talk with one of our agents?

For most people, their home is their single most valuable possession and largest investment. Homeowners insurance protects your investment as well as you, your family and your household possessions.

If you were to suddenly lose your home due to fire or a tornado, or have the contents damaged or stolen, you probably could not afford to replace everything all at once. If somebody sued you for an injury or damage caused by you or your property, the cost of defending against that lawsuit could be very expensive regardless of the outcome.

All of these situations are covered by the homeowners package policy. And while it may be unpleasant to think about fire, theft, and other uncertainties of life, let’s face it, that’s reality.

Yet another reason you need to carry homeowners insurance is that mortgage lenders require it. No mortgage company will lend the large amounts of money needed to finance homes at today’s prices without requiring an insurance policy to protect that investment.

My homeowners insurance is part of the payment I make each month to the mortgage company. Who decides what insurance to get?

You do. It’s your home and your insurance policy. As a means of protecting its investment, the mortgage company collects a set amount from you each month, puts it in escrow, and then pays your insurance and taxes when they fall due. However, the policy is still yours and you may select the insurance you feel offers the best coverage at the best rates. In fact, if you allow the mortgage company to choose, you might well end up paying more for your homeowners insurance.

I know I have that homeowners policy in a drawer somewhere. What exactly does it cover?

“Exact” coverage is hard to define because there are different policies. However, about 80 percent of homeowners policies are based on a standard form, which we described in this guide. All homeowners policies cover two important areas: property and liability. Remember that you have to have protection against the proverbial thief in the night and the person who slips on your sidewalk by day.

What this means in insurance terms is that your homeowners policy has two basic components. It covers your structures, possessions, property insurance, and it furnishes protection against personal liability. Personal liability, as its name implies, means you are legally obligated to pay money to another person for actions caused by you, your family, or your property. Liability extends to medical payments to others for injuries caused by you or your family.

I work out of my home. Will my homeowners insurance cover my business?

Yes, but on a very limited basis. Loss of business property is usually reimbursed up to $2,500 in the house and up to $250 for business property damaged or lost away from the premises. Even if your business is a sideline such as a craft studio, these limits may be too low to cover all the equipment and materials you have accumulated. It’s also important to know that no business liability coverage is included in a standard homeowners policy. Your Heuer Insurance agent can help you ascertain any additional coverage you might need. This additional coverage may be added to your homeowners policy or found in a separate commercial policy.

Most business policies include a “coinsurance” clause stipulating what percentage of the total value of your property must be insured to be fully reimbursed for a loss, even a partial one (most losses are partial). If you insure for less than that amount, your insurance company may impose a “coinsurance penalty” on your claim.

Insurance is a heavily regulated industry. Every state has a department that regulates and monitors every insurer operating within the state’s borders. In addition to approving rates, your state’s insurance department is involved in all insurance matters on behalf of private citizens and businesses. It also issues operating licenses to insurers and agents, based on their ability to meet the state’s requirements for conduct and knowledge about insurance issues.

Your insurance company and Heuer Insurance Agency work together to provide you with prompt, quality service in the case of a claim. If you ever have difficulty resolving a claim, you should speak with your Heuer Insurance agent. However, you can also contact your state’s insurance department if you wish to know more about your options and rights as an insurance consumer.

Agents are there to help you. At the most basic level, any agent should be able to answer your questions about insurance, help you thoroughly assess your insurance needs and offer you insurance products to help meet those needs. Also, any insurance agency should provide you with prompt, quality service in the case of a claim.

Just as important is the level of professional confidence and personal comfort you feel with the agent. Many people stick with the same insurance agent for decades, even generations. It helps to find an agent you can get to know and trust. Heuer Insurance Agency has been here since 1929!

An important, but sometimes overlooked factor to keep in mind is that there are two kinds of insurance agents: those who represent only one insurance company and those who represent more than one insurance company.

Agents offering through their agencies only the policies of one insurance company often are referred to as “captive agents,” because the company they represent does not allow them to offer their customers competitive alternatives.

Since term insurance only provides a benefit if the insured dies during the policy term, its premiums will be the closest to pure death cost. This is why term is the least expensive coverage to buy at younger ages. At an older age, the cost of a term policy rises rapidly along with the increasing death cost, and may soon become prohibitive for many senior citizens. A term insurance policy’s premium will remain the same during the term, and then increase at each renewal. For example, an annual renewable term policy is written for one year at a time, so the premium will generally increase each year. A five-year renewable term policy premium will remain level for the five-year term, and then increase at the renewal. Once renewed, the policy premium remains level until the next renewal, and so on until the renewal provision expires (typically at age 65), or when the insured either decides the premium has risen too high or the insurance is no longer wanted.

Permanent insurance rates are also fixed for the policy term. However, since the policy is permanent, this fixed premium must represent an average death cost over the entire expected life of the insured. The result is that permanent policy rates will often be significantly higher than term rates for the younger ages, but then significantly lower for the older ages.

Permanent insurance will always be there. Some final expense needs are permanent, and only permanent insurance is guaranteed, assuming you pay the premiums, to be there when needed. Term insurance, by its nature, is temporary, and at some point will become nonrenewable. In fact, a good life insurance rule of thumb is to buy permanent insurance for permanent needs (funeral, burial, estate liquidity), and term insurance for temporary needs (mortgages, college costs).

Permanent insurance premiums are fixed for life. While the premium may be higher at younger ages than term, it will never go up, and that can be a great comfort upon reaching an older age and not having to face the possibility of your term insurance premium increasing beyond your ability to pay, possibly at the very time you need your insurance the most.

Permanent insurance builds cash values. During those early years of your policy, when your lifetime average premiums are higher than the death cost, that extra money is set aside to help cover the higher death costs in later years. But in the meantime it is put to good use. In effect, it becomes a form of savings account inside your life policy. This cash value, as it grows, can be used as the basis for a loan from the insurance company, used to pay premiums if necessary, or taken as a cash settlement in the event you cancel the policy.

Talk to our life department, we can show you options, and then you choose what policy is best for you.

There are varied needs for funds upon the death of an individual, and all must be taken into account to arrive at a proper amount of insurance. For simplicity, some authorities recommend a good rule of thumb to be five times your annual income. Your Trusted Choice® agent at Heuer Insurance Agency can talk with you about your needs and goals, and illustrate how each item translates into a given amount of funds needed at the time of death. He or she can also share how to account other sources of income (such as Social Security or retirement plans) that will actually lower the amount of life insurance necessary.

Upon death of the insured, the insurance company pays the policy’s benefit amount to the beneficiary (or beneficiaries) named by the insured on the policy. Some policies may provide additional benefits, so be sure to discuss this with your Trusted Choice® agent, Heuer Insurance Agency.

Does the circumstance of death determine how much my beneficiary will collect?

During the first two years of the policy period, there may be conditions (fraud, misstatement of age, suicide) that can affect the death benefit paid by the policy. Your Heuer Insurance agent can discuss these with you. After two years, the full policy death benefit is payable, regardless of the cause of death. (Some policies may also pay extra benefits in certain conditions, for example, death of the named insured as the result of an accident.)

Will my beneficiaries receive the benefit in one lump sum, or will it be distributed over a period of years?

That is entirely up to you, or you can leave the decision to your beneficiaries. Both options are available.

Your choice of beneficiaries is entirely yours. You can name individuals, organizations or your estate. You can also change them at any time. The original beneficiaries under your policy, as well as any changes you later make, must be designated in writing to the insurance company, and attached to your policy by endorsement.

Although there are many types of life insurance policies, nearly all are variations of two basic types, term and permanent. (A third type, known as universal life, is a combination of term, permanent and various investment options. Its complexity is beyond the scope of our overview, but if you are interested, your Trusted Choice® agent can discuss if a universal policy would be a good fit for your life insurance needs and goals.)

Term insurance is exclusively death coverage. The policies are written for a specific length of time (the term referred to in the name). Common terms are for one year, five years, and ten years, although longer terms may be available. If the insured dies during the term of the policy, the death benefit is paid to the beneficiaries. If at the end of the term the insured is still alive, the coverage ends.

Unlike term insurance, a permanent insurance policy (often referred to as whole life) never terminates as long as the premiums are paid. It also builds cash value in the policy that can provide valuable living benefits in addition to the death benefit.

For term insurance, the answer is always yes. For permanent insurance, as the living benefits accumulate, they may be used to provide funds for financial needs such as loans, premium payments and retirement benefits.

Flood is not covered under a Homeowner, Dwelling Fire or Rental Insurance policy. Floods are the most common and costly natural catastrophe. Floods are nature’s number one disaster. You do not have to be in a Flood zone to purchase Flood Insurance. Call your insurance agent at Heuer Insurance Agency to obtain a Flood quote. It can be purchased as a separate policy through the National Flood Insurance Program.

Earthquakes are not covered under a Homeowner, Dwelling Fire, or Rental Insurance policy. Many of our homes today sit on fault lines. This coverage can usually be added to your policy by endorsement for an additional premium. Call Heuer Insurance Agency for a quote.

You would need to purchase Comprehensive and Collision coverage through the rental carrier commonly referred to as a Loss Damage Waiver. This waiver basically absolves you of any liability if the car becomes dented, breaks down, or gets scratched. It will also protect you from diminution in the value, should you be involved in an accident. This protection also extends to loss of use, should the rental vehicle be in for repairs.